Earlier this week, Singapore's largest bank, DBS, announced its latest earnings. In the three months ending March 2021, net income was up 72 percent.
The bank also posted net income of S $ 2 billion for the same period compared to S $ 1.17 billion a year earlier.
CEO Piyush Gupta not only highlighted the recovery of business after COVID-19, but also gave insights into the digital exchange of cryptocurrencies launched last year.
S $ 30 – S $ 40 million dollar daily trading volume
According to DBS, the digital exchange, which is currently only open to accredited investors, has a daily trading volume of between S $ 30 and 40 million. There are currently 120 investors on board.
DBS said they have "hundreds more, probably thousands of customers waiting in line" to become an investor.
"We're a little thoughtful about how we're going to get them on board, much like we are on the assets side," said CEO Piyush Gupta.
By comparison, Binance, the world's largest cryptocurrency exchange, has a daily trading volume of $ 46 billion. The second largest exchange, Coinbase, has a daily trading volume of $ 6 billion.
DBS sees great interest in trading cryptocurrencies and in digital custody
When asked about the potential growth of digital exchanges, CEO Piyush was optimistic about the future of cryptocurrency.
I think given the huge interest in all four of the cryptos we are trading in now, that interest is quite high. And that's why I think it will attract. It's hard to tell if it will bring in tens of millions or hundreds of millions of incomes over the next few years. So I think we should get in there, find out, and grow, and then we'll get a better sense of how big this could be in time.
Piyush Gupta, CEO of DBS
In addition to trading in cryptocurrencies, there is also great interest in whether the bank allows the custody of digital currencies.
"In terms of digital custody, we are now getting a lot of approaches from other exchanges who want to use us for digital custody because it is obviously superior," said Piyush.
CEO Piyush: Blockchain is a trailblazer for currency settlement
As DBS tries to hold and gain more market share in finance, the bank has been actively looking for new revenue opportunities.
In addition to the digital exchange that DBS started last December, DBS partnered with Temasek and J.P. Morgan announced to launch a new blockchain-based global payments platform.
Called Partior, it aims to disrupt the traditional “hub and spoke” model for cross-border payments, resulting in more efficient settlement and settlement of payments.
“With the blockchain, you can democratize it on a large scale for any counterparty in the world. I'm not going to limit it to locations that are set in an arrangement. Therefore, anyone on this platform can pay effectively in real time immediately. And so your processing of securities, processing of foreign exchange, processing of active payments, which you do in real time. I think this is the game changer and much better than the current expat infrastructure, including the Swift infrastructure, ”added CEO Piyush.
Cryptocurrency and blockchain technology are an important pillar of content for Vulcan Post and we will continue to cover developments in this area. You can follow our coverage here.
Selected image source: CNBC